New store part of Hy-Vee’s aggressive growth strategy

The $20.8 million investment in the Springfield Hy-Vee is part of an aggressive strategy, company chairman, president and CEO Randy Edeker said Friday.

By Tim LandisBusiness Editor

The $20.8 million investment in the Springfield Hy-Vee is part of an aggressive strategy of opening new stores, updating existing stores and expanding into new markets, company chairman, president and CEO Randy Edeker said Friday.

In Springfield ahead of the 6 a.m. Tuesday opening of the Hy-Vee at 2115 S. MacArthur Blvd., Edeker said he saw the potential in the former Kmart site early on. He added that it is not unusual for the Iowa supermarket chain to build in older residential-commercial areas.

“Obviously, it was in rough shape. There were trees growing up through the bowling alley (the old Spillway Lanes),” said Edeker. “To us, we thought that's a good spot. I know we can do well in Springfield because we'll treat people right and draw people to this part of town.”

The 24-hour Springfield supermarket is number 238 for Hy-Vee in eight Midwestern states. Hy-Vee has annual sales of more than $8 billion.

The city of Springfield approved $3.5 million from a MacArthur Boulevard tax increment financing district to assist with development costs.

Hy-Vee will have opened four new stores, including Springfield's, expanded or remodeled 10, relocated two and opened 16 convenience stores by the time the company fiscal year ends Sept. 30.

A new store is planned for Bloomington in the fiscal year that begins Oct. 1, and land has been purchased for a second store in Peoria. The company also just announced plans to expanding into the Minneapolis market.

“We have a capital budget over the next five years equal to this year,” said Edeker. “You'll see us continue to focus.”

Hy-Vee has hired 130 full-time and 570 part-time employees for the Springfield store. Only the supermarket will be open 24 hours. The adjoining Hy-Vee convenience store will be open 5 a.m.-11 p.m. seven days a week.

In addition to the supermarket and convenience store, the Springfield Hy-Vee includes a Market Grille full-service restaurant, pharmacy with drive-up, a “Health Market” department, wine-and-spirits store with outside entrance, an on-site dietitian and eight chefs

Store director Kyle Thornsbrough said the store already has drawn foot and vehicle traffic well ahead of Tuesday's opening.